Bergen County home sales are doing well because demand is strong.
By the time you get to August, the majority of the real estate year is over. This is why it makes sense to analyze the market now. Frankly the last 2 weeks of August are deadly. Hardly anyone is around as most people are on vacation. Home buyers want to close by mid month so there’s enough time to register children for school. College students are packing up and going back to school It’s really not a robust time for residential sales.
The fall market is strong. There are many transactions that happen then through November. While homes sell every day of the year, this is a good time to look back at what’s happened. The next time is January 1st because we have a lot of end of year closings.
New Jersey MLS figures are clear – comparing 2016 to 2017 through July, here is what we have: Only 2% more sales overall. The average sales price is up 4%. Time on the market is down 10%.
Rising prices with a tiny increase in volume indicates low supply. Even though our supply of homes to sell is low, the average sales price increase isn’t crazy at 4%. As a result, this is a healthy sustainable market.
2004 and 2005 was a crazy unsustainable market. At this point in the year, that market had 1% more sales while the average price rose 14%. Why anyone thought this would continue is beyond me. It’s important to look at the data because it shows you what is really happening.
Jeff Otteau just released his latest market letter. In it he notes that because of increased consumer confidence, luxury home sales are up. He has sales at $1-2.5 million up 11% in New Jersey and over $2.5 million higher for the first time in over a decade. Some people see the high end market as the market to watch.
Bergen County home sales are doing well because of many factors. Confidence in the market and in the economy for the future is certainly driving this as are low rates.
The bottom line is that this is a good market for everyone. If you want to know how a particular town or towns are doing contact me and I’ll send you what’s happening.